Insurance - PricewaterhouseCoopers

Risk Management Declaration
The Board of each life company must also provide APRA with a declaration on risk
management for each financial year. This declaration involves stating, to the best of
the Board’s knowledge and belief, having made the appropriate enquiries, that:
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there are systems in place to ensure compliance with the Life Act, the Regulations,
prudential standards, actuarial standards, the Prudential Rules, reporting
standards, the Financial Sector (Collection of Data) Act 2001, authorisation
conditions, directions and any other requirements imposed by APRA;
the processes and systems surrounding the production of financial information
are effective;
an RMS is in place which has been developed in accordance with the
requirements of LPS 220; and
the systems that are in place for managing and monitoring risks, and the risk
management framework, are appropriate to the company, having regard to such
factors as the size, business mix and complexity of its operations.
Outsourcing
The key requirements of LPS 231 – Outsourcing include:
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having a policy relating to outsourcing of material business activity;
having sufficient monitoring processes in place to manage the outsourcing of
material business activities;
having a legally binding agreement in place for all material business activities with
third parties, unless otherwise agreed by APRA;
consulting with APRA prior to entering into agreements to outsource material
business activities to service providers who conduct their activities outside
Australia; and
notifying APRA after entering into agreements to outsource material
business activities.
Business continuity management
The key requirements of LPS 232 – Business Continuity Management include:
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developing and maintaining a business continuity management policy;
conducting a business impact analysis;
maintaining a business continuity plan and testing it at least annually; and
notifying APRA of any major disruptions to business operation
108 | Insurance facts and figures 2009